Recent legislation indicated that there will be greater integration (i.e., mainstreaming) of handicapped children. The resulting social adjustment of handicapped and nonhandicapped children to each other is a major concern. The purpose of this project was: (1) To compare, in terms of their social, play, and effective behaviors, handicapped and nonhandicapped children, (2) To investigate the effects of being from a mainstreamed school, and (3) To study the effects of having a handicapped child in a play group of nonhandicapped children. Experimenters observed and coded the behaviors of orthopedically handicapped and nonhandicapped children ages 5-10 years in small group-play sessions. Nonhandicapped children were found to be more often involved in the social exchanges and group activities than were the handicapped children. Having been to a mainstreamed school positively affected the way nonhandicapped children interacted with a handicapped child. Other than a statistically nonsignificant tendency for the presence of a handicapped child to inhibit the group, groups with and those without a handicapped child were highly similar in those social, play, and affective variables assessed.